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The Central Bank approved 3,985 new loans amounting to Rs.11,829 million under the Saubagya COVID-19 renaissance facility during the period 13-23 July 2020

The Central Bank of Sri Lanka (CBSL) approved 3,985 new loan applications, amounting to Rs.  11,829 million, submitted by licensed banks under the Saubagya COVID-19 renaissance facility Phase II & III during the period 13-23 July 2020. 

With the new approvals mentioned above, the cumulative number of loan applications so far approved by the CBSL under the Saubagya COVID-19 renaissance facility increased to 26,291 as of 23rd July 2020. Similarly, the total value of   loans approved by the CBSL increased to Rs. 72,079 million as of 23rd July 2020. The licensed banks had already disbursed Rs. 45,777 million among 18,007 borrowers island-wide as of 23rd July 2020 as shown in Table – 1 below.

Compensation Payments to the depositors of ETI Finance Limited (ETIFL) and Swarnamahal Financial Services PLC (SFSP)

Central Bank of Sri Lanka (CBSL) has taken measures to pay the compensation payments to the depositors of ETIFL and SFSP from the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS), upon suspension of the finance businesses of ETI Finance Limited (ETIFL) and Swarnamahal Financial Services PLC (SFSP) with effect from 13.07.2020. Accordingly, compensation payment will be commenced from Saturday 25.07.2020 through selected branches of the People’s Bank Island wide. In terms of the regulations of the SLDILSS, maximum compensation of Rs. 600,000/- per depositor will be paid through 45 branches of People’s Bank Island wide.

Accordingly, the necessary funds for paying compensations to all the depositors/ legal beneficiaries confirmed by ETIFL and SFSP has already been allocated by SLDILSS and the CBSL has taken all required measures to ensure that compensation procedure is implemented in an efficient and effective manner.

NCPI based Inflation increased in June 2020

Headline inflation as measured by the yearon-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100) increased to 6.3 per cent in June 2020 from 5.2 per cent in May 2020. This was mainly driven by the monthly increase in prices of items in the Food category. Accordingly, Food inflation (Y-o-Y) increased to 13.6 per cent in June 2020 from 11.1 per cent in May 2020, while Non-food inflation (Y-o-Y) remained unchanged at 0.8 per cent in June 2020. 

The change in the NCPI measured on an annual average basis increased to 5.6 per cent in June 2020 from 5.2 per cent in May 2020.

Continuation of Measures Taken to Preserve the Foreign Currency Reserve Position of Sri Lanka

With a view to preserve the foreign currency reserve position of the country and considering the possible negative impact to the Sri Lankan economy due to the outbreak of Covid-19 pandemic, the Hon. Minister of Finance, Economic and Policy Developments with the recommendation of the Monetary Board of the Central Bank of Sri Lanka and the approval of the Cabinet of Ministers have issued an Order introducing following measures on outward remittances on Capital Transactions for a period of six (06) months effective from 02 July 2020.

Sri Lanka Purchasing Managers’ Index - June 2020

Benefitting from the normalizing of economic activities in the country following the complete relaxation of restrictions for mobility, the Manufacturing PMI increased significantly in June 2020 recording 67.3 with a month-on-month increase of 18.0 index points compared to May 2020.

Appointments to the Monetary Board - Mr Sanjeeva Jayawardena PC, Dr (Mrs) Ranee Jayamaha and Mr Samantha Kumarasinghe

Three new members have assumed duties as serving members of the Monetary Board of the Central Bank of Sri Lanka (CBSL), pursuant to being appointed to the Board by His Excellency the President, under section 8(2)(c) of the Monetary Law Act with the approval of the Constitutional Council.

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